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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

Ranking: 3

General Dynamics

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 72,200 people worldwide and had 2005 revenue of $21.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.

Instances of Misconduct

Campbell alleged he was fired due to a condition covered by the Americans With Disabilities Act. “On December 30, 2002, General Dynamics terminated the plaintiff's employment on account of persistent absenteeism and tardiness. Alleging that these infractions (and, hence, his dismissal) stemmed from a medical condition known as sleep apnea that General Dynamics should have accommodated, the plaintiff filed an administrative complaint with the proper agency charging discrimination on the basis of disability.” In October 2005, both parties resolved the case pursuant to an undisclosed settlement.... more»

The lawsuit makes a hostile environment claim against General Dynamics’ Electric Boat subsidiary. “From the time she was hired, [the plaintiff] claimed in her suit, she was subjected to verbal and physical harassment, including an incident on Aug. 24, 1994, when another worker kicked a chair at her, injuring her wrist.”
While the jury awarded the Plaintiff $750,000, the award was capped at $300,000 due to statute. See 106 F. Supp. 2d 386... more»

General Dynamics settled a lawsuit alleging that it overcharged the Department of Defense for testing F-16 fighter jets. Four former company employees who tested the F-16s at Edwards Air Force Base “claimed that General Dynamics billed DOD for thousands of hours that were never worked, using falsified time cards from employees who regularly left the plant early. The fraud occurred from 1982 to 1986 and involved about 50 employees.”... more»

Final Analysis Communication Systems, Inc. brought claims against General Dynamics for breach of contract, fraud, tortuous interference with contractual and business relations, fraudulent inducement, negligent misrepresentation and breach of warranty. In September 2005, a jury rendered a verdict against General Dynamics in the amount of $138 million and a verdict in its favor in the amount of $8 million on their counterclaims. The following April, the judge entered a final judgment in favor of FACS in the amount of $19,870,000 and in favor of General Dynamics in the amount of $8 million.... more»

“The plaintiffs, former employees of the company's E-Metrics subsidiary, claimed they were promised an equity interest in E-Metrics, and were not compensated when the assets and liabilities were transferred to Hughes Aircraft Company as part of the sale of the Missile Systems business in 1992.”... more»

General Motors and General Dynamics, as successor owner of portions of General Motors, allegedly violated the Arms Export Control Act, 22 U.S.C. § 2778, in connection with the unauthorized export of technical data, defense services and defense articles to foreign person employees to include those of proscribed countries and other matters. Under a consent agreement, both companies agreed to pay $20 million in fines and remedial measures, with General Motors responsible for $15 million and General Dynamics responsible for $5 million. See related General Motors instance, “Unauthorized Export of Technical Data.”... more»

General Dynamics settled a lawsuit alleging a violation of the Age Discrimination in Employment Act (29 USC §§ 621-634 et. seq.). “The lawsuit arises out of a l992 layoff that occurred soon after General Dynamics moved its corporate headquarters from St. Louis to Falls Church, Virginia….Laid-off employees under the age of 50 received the full five years of credited service. Employees between the ages of 50 and 55 received less credited service and employees over the age of 55 received no additional credited service under the program…. The EEOC's complaint, filed in the U.S. District Court in St. Louis, alleges that General Dynamics' failure to give employees over the age of 50 a full five years of additional credited service constitutes age discrimination.”... more»

General Dynamics Electric Boat, under contract to strip PCB-contaminated paint from storage tanks at the Department of Energy facility in Windsor, Connecticut, was fined for violating the Toxic Substances Control Act (15 USC §§ 2601 et seq.) with regard to PCBs. “Electric Boat's personnel were required to use disposable protective clothing during paint removal, and the clothing was required to be shipped for disposal (with other PCB contaminated wastes) to a chemical waste management facility in New York. Instead, Electric Boat sent the personal protective equipment to a New Bedford, Mass. laundry facility.”... more»

A total of 23 companies, including General Dynamics, Lockheed Martin, Textron and Fluor, agreed to pay a total of $542,000 to resolve a series of hazardous-waste dumping claims. The settlement involves wastes brought to landfills along the Pantano Wash in Tucson, Arizona, a state Superfund site known as the Broadway Pantano Water Quality Assurance Revolving Fund (WQARF) site. Complaints filed under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and Arizona’s Water Quality Assurance Revolving Fund law accused the companies of having arranged for the disposal or transport of toxic wastes – including trichloroethylene (TCE), tetrachloroethylene (PCE), and methylene chloride – to the landfill area from 1945 until the early 1970s. As part of the settlement, General Dynamics agreed to pay $150,750.... more»

General Dynamics and its 401(k) plan sponsor settled an ERISA (Employee Retirement Income Security Act of 1974) class action lawsuit filed by current and former employee participants in two General Dynamics 401(k) plans. The lawsuit alleged that participants were charged excessive fees. Under the settlement, a $15 million settlement fund will be created.... more»

In 1988, the U.S. Navy awarded a $4 billion fixed-price contract to McDonnell Douglas (acquired by Boeing in 1997) and General Dynamics for development of the A-12 stealth attack aircraft. The program encountered serious technical difficulties, running substantially over budget and behind schedule. In 1991, after the Department of Defense refused additional funding, the Navy terminated the contract due to the contractors’ default. The contractors challenged the termination in federal court. In June 2009, the U.S. Court of Appeals for the Federal Circuit affirmed the Navy’s termination, holding that the termination decision was justified due to “the contractors’ performance history (e.g., the failure to meet several milestones, including the significant first flight), coupled with the contractors’ dire financial difficulty, which negatively impacted their performance under the contract.” The appeals court decision required the contractors to repay the government more than $1.35 billion in principle funds advanced under the contract, plus interest accruing since 1991, for a total sum of approximately $2.8 billion. In May 2011, the U.S. Supreme Court overturned the appeals court and remanded the case for further proceedings. In January 2014, it was announced that Boeing, General Dynamics, and the government agreed to a settlement in which both companies each agreed to provide aircraft and services to the military valued at $200 million. General Dynamics agreed to provide a credit against a contract to build the DDG-1002 guided missile destroyer, and Boeing agreed to provide three EA-18G aircraft and a credit for converting the existing multi-year contract to a firm-fixed price contract.... more»

Texas company DataTern, Inc., sued several companies, including General Dynamics, for allegedly infringing a patent on relational databases (the “402 Patent”). DataTern alleged that General Dynamics infringed the patent by making, operating, and maintaining object oriented software applications and systems, including an intranet application tracking corporate integrity agreement workflow. In September 2011, General Dynamics settled the lawsuit for an undisclosed amount.... more»

General Dynamics and its subsidiary, General Dynamics Armament and Technical Products Inc. (GDATP), settled allegations that GDATP fraudulently billed the government for parts used in Navy aircraft, including the C-141 transport plane, and Los Angeles and Trident Class submarines. The government alleged that between September 2001 and August 2003, GDATP defectively manufactured or failed to test the parts and billed the Navy even though the parts did not meet military specifications. As part of the settlement, neither General Dynamics nor GDATP admitted or denied wrongdoing.... more»